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Husky Injection Molding Systems

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Injection Molding:

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Structure of the Business:
  Important aspects of the Business:
1.  Machines
2.  Molds
3.  Hot runners
4.  Robotics
5.  Value–added services
6.  Sales and after sales service

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Husky's Strategy:
  Caters to the preform niche markets.
  Employed an Assemble-to-order strategy for
medium sized machines and make to stock for
the smaller ones.
  Concentrated mainly on PET preforms.
  Known for their speed, ruggedness, resin
utilization, and durability.
  Lower cycle times.
  Known for charging a price premium,
sometimes to the tune of 10% to 20%.

4
SWOT analysis:
STRENGTHS

Quality

Reliability

Knowledge
of
business
(
Experience)

Technology
(R&D)

ADer
sales
service

Values
(
Energy
and
environment)


WEAKNESSES

Cost

Low
market
share

ConcentraMon
only
on
one
parMcular
product

Sales
force


OPPORTUNITIES

Entry
into
new
markets

Expansion
of
product
range

ReducMon
of
internal
costs

ConcentraMon
on
other
products
such
as
hot
runners,
molds,
robots,
etc.


THREATS

CompeMtor's
low
prices

New
entrants
into
the
market

VolaMle
commodity
market
(e.g.
resin)


.
. . .
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What went wrong:
1.  Scarcity of PET resin led to processors
halting their expansion plans. Thus putting
orders for new equipment on hold.
2.  New entrants into the market offered
comparable products a prices
approximately 20% lower. The sales team
was unprepared for such vigorousity in the
business.

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Possible strategies:
  Try and reduce the sales price of the existing
product range.
  Enter new markets through M&As.
  Diversify the product range (do not rely only
on the PET preform business).
  Develop a low cost product range that
competes with the competitors.
  Leverage the expertise in hot runners and
robotics by offering such stand alone systems.

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Recommendations:
  Adhere to current Purpose and Values.
  Diversify the business.
  Concentrate on the hot runner and robotics
business.
  Instill new blood into the sales force.
  Contemplate entry into new/international
markets through M&A.

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Evidences to back it up:
Husky
 Major
CompeMtor



=
5.77
per
min
 
=
5.08
per
min

ProducMon
cycles
(based
on
cycle
Mme)
 
=
346.15
per
hr.
 
=
305.08
per
hr


=
7719.23
per
day
(op.
 
=
5766.1
per
day
(op.

hrs.
per
day
=
22.3)
 hrs.
per
day
=
18.9)


 

 


Units
produced
(48
preforms
per
cycle)
 
=
135240924.2
 
=
101023561.2


(It
takes
488
days
to

match
Husky’s
annual


 

 producDon)

Avg.
wt.
per
preform
 
=
24.39
gm.
 
=
24.42
gm.

Avg.
wt.
of
resin
per
day
 
=
9037.06
kg
 
=
6758.89
kg

Cost
of
resin
per
day
[@
$0.7
per
kg]
 
=
6324.82
 
=
4730.12

(cost

saving
of
$

Cost
of
resin
per
unit

 
=
$
0.01707
 
=
$
0.01709

2700
per

yr.)


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Thank you
Questions???

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